Balance of retained earnings, Cash dividends declared and paid during 2015. $43,

Question

Balance of retained earnings, Cash dividends declared and paid during 2015. $43,000. It neglected to record 2013 depreciation expense of $55,500. Which is net of $4,500 in tax benefits? The company earned $126,000 in 2015 net income. Prepare a 2015 statement of retained earnings for Amos Company. Ecker Company reports $2,700,000 of net income for 2015 and declares $388,020 of cash dividends on preferred stock for 2015. At the end of 2015.the company had 678.000 weighted-average shares of com. mon stock. What amount of net income is available to common stockholders for 2015? What is the company's basic EPS for 2015? Kelley Company reports $960,000 of net income for 2015 and declares SI20,000 of cash dividends on its preferred stock for 2015. At the end of 2015. the company had 400,000 weighted-average shares of common stock. What amount of net income is available to common stockholders for 2015? What is the company's basic EPS for 2015? Round your answer to the nearest whole cent. Compute the price-earnings ratio for each of these four separate companies. Which stock might an analyst likely investigate as being potentially undervalued by the market? Explain.

Explanation / Answer

net income for 2015 = $960000

Div for pref stock = $120000

a. net income available to common stockholders= 960000-120000= 840,000$

b. Basic EPS = (net income – preferred dividends) / weighted average number of common shares outstanding

Basic EPS= 840000$/400000=$2.10

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